Insurance firms not offering hybrid working see lower quality hires, reduced job acceptances and poorer staff wellbeing, a report has found.
A survey involving 116 UK insurance companies by RPO specialist Vermelo found a correlation between the number of days employees were required to be in the office and the number of applicants companies receive for vacancies, with those requiring at least three days in the office likely to see fewer interested candidates.
Hybrid working
One in five (19%) expected their hybrid or flexible working policies to become more restrictive next year, with Vermelo urging them to approach this with caution.
The survey found that expecting staff to be present in the office at least three days a week was the least effective in boosting employee productivity, while 40% reported a decrease in employee wellbeing when three or more days were mandated.
The UK insurance working policy report 2024 finds that:
- One in three insurance companies are fully remote. Twenty-five per cent insisted on two days per week in the office and 22% mandated three days
- Job acceptances fell when organisations required 3-5 days in the office and fixed hours of work. They increase when days and hours in the office are more flexible
- The biggest impact on a drop in applications was seen when employees were required to be in the office 4-5 days a week, however, only 8% of insurance firms adopt this policy
- Forty-seven per cent of companies saw quality of hire increase when they did not mandate any office attendance, while 57% reported an increase in quality hires when one day was mandated
- Half saw staff retention decrease when 4-5 days of office attendance was expected.
Anthony Butler, MD at Vermelo RPO: “The findings from this study could significantly impact the insurance sector in the coming years. We know that having the right people in an organisation is the difference between success and failure and the industry has struggled to attract top talent effectively for years, but the decisions made now can have a real and substantial effect.
“With some organisations moving toward full-time in-office work, companies with flexible policies can become employers-of-choice for vast new talent pools. The results of our study show that productivity, quality of hire and company culture can all be improved through flexible working policies – this is game-changing insight. It’s crucial to act now and not wait, as policies for 2025 are being drawn up, and these new talent pools won’t be available for long, particularly as hiring competition is expected to increase over the remainder of 2024 and into 2025.”
The report recommends that organisations measure and report on the effect of their hybrid and flexible working policies on metrics including hiring, quality of applicants, retention, productivity, wellbeing and culture.
It suggested that candidates should be made aware of what their working location and hours would be during the recruitment process. If the business must maintain fixed hours or full-time office attendance, then this could be mitigated with an attractive benefits package, it suggests.
Kathryn Hunt, head of operations at Vermelo RPO: “The results of this survey are great news for employers who can offer candidates flexible locations and hours, as outdated policies often sideline these applicants. This survey provides evidence that, contrary to popular belief, a flexible working policy can increase productivity and company cohesiveness. For those still unsure, flexible working policies require a shift in focus to improve remote business culture—something that this study shows some organisations have already achieved.”
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